A bitcoin halving event occurs after 210,000 blocks are mined. As programmed, it will happen every 4 years. During this time, the mining rewards are split in half, causing miners to get 50% lesser bitcoins for successful mining.
Initially, when bitcoin launches, mining rewards are set at 50 BTC. After the first bitcoin halving in September 2012, it became 25 BTC. In 2016, it was 12.5 BTC per new block mined, and this year, it is further reduced to 6.25 BTC.
As the above bitcoin halving chart shows, post rallies have been evident for the past 12 years. It can then be fairly said that each halving event affects the bitcoin price in a long-term perspective.
During the first halving event, the price of bitcoin has increased by over 200x. Currently, the bitcoin price is trading around $18,332.61. This records a 151.1% annual gain. Other bitcoin halving chart shows as well that the average bitcoin trading volume also increases prior to a bitcoin halving event.
In 2012, over two months before the first bitcoin halving, the average daily trading volumes increased by 50% until May of the following year. While in 2016, before the second bitcoin halving, the average trading volumes have grown by 150% over the month.
Buy BTC Before Bitcoin Halving 2024
Bitcoin halving chart data shows that bitcoin rallied sharply following the previous three halvings. Many investors are also optimistic that the upcoming bitcoin halving in 2024 will have the same effect.
Thus, buying BTC before the next bitcoin halving is worthy to be considered. As bitcoin continues its bullish movement today, those who have bought BTC earlier this year in anticipation of the bitcoin halving 2020 have received significant profits.
Bitcoin halving 2024 is expected to happen at the 740,000th block, causing the reduction of block mining rewards to 3.125 BTC. This event continuously increases BTC’s demand, in line with driving its mass adoption.